Companhia Vale do Rio Doce (CVRD) maintained in the first quarter of 2007 (1Q07) performance consistent with its focus on continuous improvement, deriving from its efforts to make the best use of opportunities presented by the long cycle of minerals and metals through investment in organic growth and acquisitions backed by rigorous discipline in capital allocation.

These efforts have produced strong expansion in the Company's productive capacity and diversification of its assets portfolio, which, among other benefits, has allowed it to leverage its exposure to the economic cycle.

In order to facilitate comparisons with the past and better evaluate CVRD's performance, we shall, in this document, be using pro forma data for 1Q06 – as if Inco Ltd., now CVRD Inco Ltd., had been acquired from January 1, 2006 – with the exception of information concerning debt and investments.

Complete accounting information for 1Q06 can be found in the report "Financial Information – first quarter of 2007," filed with the U.S. Securities and Exchange Commission (SEC) and Comissao de Valores Mobiliarios (CVM) in Brazil and in reports on CVRD's results for the first quarter of 2006.
In 1Q07, new records were set:

- 1Q07 was the best first quarter in CVRD's history for sales of various products: iron ore (58.6 million metric tons), pellets (7.9 million metric tons), refined nickel (71 thousand metric tons, on a pro forma basis), copper (66 thousand metric tons, on a pro forma basis), cobalt (580 metric tons, on a pro forma basis) alumina (700 thousand metric tons), aluminium (134 thousand metric tons, on a pro forma basis) potash (161 thousand metric tons) and rail transport of general cargo (6.0 billion net ton-kilometers (ntk)).

- Gross revenue of US$7.680 billion, an increase of 63.4% over 1Q06.

- Operational profit as measured by adjusted EBIT (earnings before interest and taxes) of US$2.702 billion, US$1.078 billion more than 1Q06.

- Net earnings of US$2.217 billion, equal to US$0.92 per share, an 86.9% increase on 1Q06.

- Cash generation, as measured by adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of US$3.184 billion, 58.4% more than the US$2.010 billion of 1Q06.

Investments totaled US$1.360 billion, of which US$923 million in organic growth and US$437 million in sustaining existing operations.

In addition to these investments, the acquisition of 100% of Inco Ltd (now CVRD Inco Ltd) was concluded in January 2007, with the payment of US$2.053 billion to the remaining shareholders and in April the financial settlement of the acquisition of AMCI Holdings Australia was completed, with the payment of A$835 million, equivalent to US$656 million.

AMCI Australia will be consolidated into CVRD financial statements as from 2Q07.

On April 30, CVRD paid the first installment of 2007 dividends, of US$0.34 per share, a total of US$825 million.

The second installment proposed in January of this year, of US$825 million, will be considered at the meeting of the CVRD Board of Directors scheduled for October 18, 2007.

If the proposal is approved, our shares will be traded ex-dividend on October 19 both on Bovespa and NYSE, and dividend payment will be on October 31.